Brady Corporation (NYSE:BRC) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

Last week, you might have seen that Brady Corporation (NYSE:BRC) released its quarterly result to the market. The early response was not positive, with shares down 4.7% to US$71.47 in the past week. It looks like the results were a bit of a negative overall. While revenues of US$383m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.4% to hit US$1.09 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the current consensus from Brady's two analysts is for revenues of US$1.56b in 2026. This would reflect a satisfactory 6.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 12% to US$4.61. In the lead-up to this report, the analysts had been modelling revenues of US$1.57b and earnings per share (EPS) of US$4.74 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for Brady

It might be a surprise to learn that the consensus price target was broadly unchanged at US$87.00, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 5.3% growth on an annualised basis. That is in line with its 5.9% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 6.7% annually. So it's pretty clear that Brady is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Brady's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

We also provide an overview of the Brady Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.